Sears Canada Modifies Store Structure

TORONTO, Jan. 29, 2014 /CNW/ - Sears Canada Inc. (TSX: SCC) announced
today that it is modifying its store structure to improve efficiency
and increase the effectiveness of the chain of communication between
management and the store associate teams within the stores. The Company
will eliminate primarily a mid-tier level of leads within its full-line
stores, resulting in an average reduction of five associates per store.
There will also be an alignment of the regional and head office
structures to reflect the new store model, and also to improve
efficiency in Sears other formats and to align with the size of the
business. This will result in a staff reduction of 624 associates.

"The changes we are making in stores will not affect the number of
front-line associates, and service to our customers will not be
impacted," said Doug Campbell, President and Chief Executive Officer,
Sears Canada Inc. "Our current structure results in inefficiencies and
barriers to effective communication among store associates and the
changes we are making are designed to result in better store execution
and consistency of presentation and standards. We continue to plan for
the future of Sears Canada and are taking steps today that will allow
us to continue serving customers as a viable national retailer coast to
coast in stores and through our Direct channel now and in the future."

Sears Canada is a multi-channel retailer with a network that includes
181 corporate stores, 241 Hometown stores, over 1,400 catalogue and
online merchandise pick-up locations, 101 Sears Travel offices and a
nationwide repair and service network. The Company also publishes
Canada's most extensive general merchandise catalogue and offers
shopping online at www.sears.ca.

Although the Company believes that the forward-looking information
presented with respect to its staffing initiative is reasonable, such
forward-looking information involves known and unknown risks,
uncertainties and other factors which may cause actual results,
performance or achievements to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking information, and undue reliance should not be placed on
such information. The forward-looking statements in this release are
made as of the date hereof. The Company does not undertake any
obligation to update publicly or to revise any forward-looking
information, whether as a result of new information, future events or
otherwise, except as required by law.